Yamanouchi House

Summary

BHP was approached on a ‘confidential basis’ by the vendor’s agents as the vendor was keen to dispose of its asset very quietly

The below market price, size of the building in marketing terms, coupled with the possibilities for improvement of the aesthetics and net internal area, deemed it to be worthy of acquisition.

BHP unconditionally acquired the office building complete with fixtures, fittings and office furniture.

BHP’s business strategy, during early ownership, was to openly market the building on an existing use basis. In parallel, BHP embarked on scheme design for an office refurbishment and also one for residential development. Considerations included such matters as foundation design and integrity and the existing structure’s capability of accommodating an additional floor. Furthermore optimisation of the fire strategy was undertaken to ensure net area gains.

The open re-marketing resulted in an occupier being identified who had an allegiance to a residential developer and the property was sold in its existing condition without any upgrade.

Business Case

STRENGTHS

Attractive VP price of £100 psf

Good quality of fit out and furniture left ‘in situ’ which could be used by incoming tenants

Was possible to re-market in existing condition

‘Off market’ acquisition due to vendor sensitivities

OPPORTUNITIES

Rapid remarketing possible due to generally good condition of building

Possibility of improvements in NIA due to fire strategy

Ability of adding a further floor

Possible residential development

WEAKNESSES

West Byfleet not a premier SW M25 town

At the time of purchase it was not the most aesthetically pleasing of buildings